Banks and savings institutions in Indiana and North Carolina affected by severe weather, including a tornado in N.C., are being encouraged by their federal deposit insurer to “work constructively” with borrowers facing difficulties beyond their control and informed of potential regulatory relief to support those efforts.
In Financial Institution Letters 28-2018 and 29-2018, the Federal Deposit Insurance Corp. (FDIC) highlights the following:
- A federal disaster for selected areas in Indiana was declared on May 4, 2018. Additional designations may be made after damage assessments are completed in the affected areas.
- A federal disaster for selected areas in North Carolina was declared on May 8, 2018. Additional designations may be made after damage assessments are completed in the affected areas.
- A current list of designated areas is available at www.fema.gov.
- The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather.
- Extending repayment terms, restructuring existing loans, or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution.
- Banks may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.
- The FDIC also will consider regulatory relief from certain filing and publishing requirements.
FDIC FIL 28-2018 (Indiana)
FDIC FIL 29-2018 (North Carolina)